Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-1810
Digital Effectiveness in U.S. Retail Banking – APEX Matrix™
Assessment to Identify the Digital Banking Leaders
BFSI ITO and Application & Digital Services
Market Report: June 2016 – Preview Deck
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18102
Our research offerings for global services
Finance & Accounting
Procurement
Human Resources
Recruitment & Talent Acquisition
PricePoint™
Global Sourcing
Locations Insider™ Contact Center
Market Vista™
Global services tracking across functions, sourcing models, locations, and service
providers – industry tracking reports also available
Transaction Intelligence
Healthcare & Life Sciences
Application & Digital
Cloud & Infrastructure
BFSI1 Business Process
BFSI1 Information Technology
1 Banking, financial services, and insurance
Subscription information
The full report is included in the following subscription(s)
– BFSI ITO, ADS
In addition to published research, a subscription may include analyst inquiry, data cuts,
and other services
If you want to learn whether your organization has a subscription agreement or
request information on pricing and subscription options, please contact us
Corporate Headquarters
Office: +1-214-451-3000
European Headquarters
Office: +44-207-129-1318
Service Optimization Technologies
Custom research capabilities
Benchmarking | Pricing, delivery model,
skill portfolio
Peer analysis | Scope, sourcing models,
locations
Locations | Cost, skills, sustainability,
portfolio – plus a tracking tool
Tracking services | Service providers,
locations, risk
Other | Market intelligence, service
provider capabilities, technologies,
contract assessment
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18103
Background and scope of the research
Background of the research
Digital proliferation, evolving customer demand patterns, need for cost containment & efficiency, high commoditization, increasing number of
cyberattacks, and rising threat from non-banking competitors are some of the challenges upsetting large retail banking corporations in the United
States. Banks are increasingly aligning their business priorities around next-generation technology themes and are focusing on formulating their
go-to-market strategy with customer-centric offerings.
Although digital banking channels have become mainstream, banks are consistently adding value-added functionalities and upgrading security
standards on these channels to boost customer loyalty and gain a competitive edge. At the same time, there is growing focus on mobilizing the
power of social media networks for more cost-effective customer service. Large retail banks are also channelizing their investments in setting up
smaller, flexible, and more customer-friendly branches equipped with multiple self-service technologies to optimize the operational costs and
enhance their appeal to the millennial customers at the same time.
In this research, we analyze consumer-facing digital functionalities as well as the associated business impact for 26 large U.S. retail banks. These
banks have been mapped on Everest Group’s Ability | Performance | Experience (APEX) Matrix, which is a composite index of a range of
distinct metrics related to each bank’s customer-facing digital investments and the associated business impact. In this report, we focus on:
Assessment of the bank’s digital functionality on multiple capability-related dimensions
Characteristics of leading banks on individual themes assessed on Everest Group’s APEX Matrix for digital effectiveness in banking
Scope of this report
Industry: Retail banking
Geography: United States
Enterprises: Includes 26 leading U.S. banks, short-listed on the basis of asset size as well as their focus on retail banking
Sources leveraged: Only publicly-available information (i.e., information from a consumers’ lens) has been used for the entire analysis in this
report. Key sources include:
Google Play and App Store
Demos / consumer access for mobile apps and online platforms of the banks that are assessed
Social media platforms – Twitter, Facebook, LinkedIn, and YouTube
Aggregators/tools – Alexa, App Anie, Likealyzer, SEMRush, SocialBlade, and Twitonomy
Company filings and press releases (annual reports, investor presentations, SEC filings, etc.)
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18104
Table of contents (page 1 of 2)
Introduction and overview 5
Retail banking – Overview 8 Challenges in retail banking 9
Primary mitigation strategies enabled through technology 10
Evolution of the new banking model 11
Technology priorities 14 Value-added features across digital banking platforms 16
Advanced security standards 17
Digital payments 18
Extensive leverage of social media 20
Branch of the future 21Digital APEX Matrix for U.S. Banks 23
Digital services framework / definition 24
APEX Matrix – overview and methodology 25
Snapshot of the collected data across individual themes 31
Digital APEX Matrix for U.S. Banks 47Characteristic of the APEX Matrix 49
Key attributes of Leaders 50
Star Performers analysis 51
Mobile banking 52
Social media 53 Online banking 54
Branch / ATM features 55
Adoption score 56
Experience score 57
Brand perception 58 Financial score 59
Topic Page no.
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18105
Table of contents (page 2 of 2)
Snapshot of digital functionality of U.S. retail banks 57
Ally Bank 58
Bank of America 59 BB&T 60
BBVA Compass 61
BMO Harris Bank 62
Capital One 63 Chase 64
Citi 65
Citizens Bank 66
Comerica 67
Discover Bank 68 Fifth Third Bank 69
First Republic Bank 70
HSBC North America Holdings 71
Huntington Bank 72
Key Bank 73 M&T Bank 74
MUFG Union Bank 75
PNC 76
Regions Bank 77
Santander 78 SunTrust 79
TD Bank US Holding 80
U.S. Bank 81
USAA 82
Wells Fargo 83
Appendix 84
Topic Page no.
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18106
This report is a part of the Everest Group’s series of reports
focused on IT services in BFSI in 2016
Each report provides:
An overview of the application services market for the BFSI verticals, capturing key trends in
market size, growth, drivers & inhibitors, adoption trends, regional/functional break-outs of the
market, emerging themes, key areas of investment, and implications
Key movements in volumes/values of AO transactions, evolving trends, market dynamics, and
emerging priorities of buyers in the last 12 months
IT Outsourcing in BFSI – Annual Report
Global Banking
Global Capital Markets
Global Insurance
Global Banking
Global Capital Markets
Global Insurance
Mobility in Banking
Mobility in Insurance
Analytics in Banking
Analytics in Insurance
IT Outsourcing in BFSI – Service Provider Landscape
Each report provides:
Assessment of service provider landscape in AO services and mapping of providers on Everest
Group’s PEAK Matrix – as Leaders, Major Contenders, and Aspirants
Benchmarking scale, scope, domain investments, and delivery footprint of each provider’s
BFSI-AO practice along with comparative evaluation of their BFSI-AO capabilities
The 2016 BFSI-AO PEAK analyses focus on identifying the “Star Performers”, i.e., providers
with the strongest forward movement over time – both in terms of market success and capability
advancements
APEX Matrix for
Digital effectiveness
of U.S. retail banks
APEX Matrix for Digital
effectiveness of
European retail banks
Enterprise Digital Effectiveness with APEX Matrix
Two reports as part of an "open source" evaluation of the digital effectiveness of the largest retail
banks in Europe and the United States and mapping them on Everest Group’s APEX Matrix – as
Leaders, Optimizers, Innovators, and Aspirants
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18107
Banks are evolving from traditional discrete banking platforms
to an innovative and connected distribution infrastructure
Evolution of the new banking model
Branch
ATM
Call center
Relationship manager
Internet
Multi-channel Omnichannel
The advent of seamless multi-channel experience and the need to engage with customers at their convenience and through
their preferred channels is leading to:
Investments in data & analytics across the banking & capital markets value chain to gain unique customer insights and
provide differentiated customer experience
Innovation in mobile services & applications to enhance customer convenience and engagement levels
Social media integration to get useful insights into customers and address their unique needs
Creation of smaller and more flexible bank branches, equipped with multiple self-service technologies
Traditional channels Customer engagement model Redefined channels
Source: Everest Group (2016)
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18108
APEX Matrix is a composite index of a range of distinct
metrics related to each bank’s customer-facing digital
investments and business impact
Mobile banking – Snapshot of the collected data Online banking – Snapshot of the collected data
Adoption score – Snapshot of collected dataBranch/ATM features – Snapshot of the collected data
Bank
Features of mobile banking
Mobile
P2P
transfers
Virtual
support
Payments
(Apple, Android,
and Samsung)
Biometric
security
features
Scheduling
appointment
with bankers
Bank 1
Bank 2
Bank 3
Bank 4
Bank 5
Bank
Features of online banking
Customized
credit cards
Price
protection
Loan
calculator
Online
chat
support
Financial
tools
Bank 1
Bank 2
Bank 3
Bank 4
Bank 5
Source: Everest Group (2016)
Bank
Branch/ATM features
Digitally-enabled
branches
Video-conferencing
in ATMs
Cardless cash
withdrawals in ATMs
Bank 1
Bank 2
Bank 3
Bank 4
Bank 5
Percentage of tweets retweeted Average number of retweets/ company’s tweet
Bank 1 Bank 2 Bank 3 Bank 4 Bank 5
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-18109
APEX Matrix for digital effectiveness of U.S. retail banks
Several banks have noticeably enhanced their market standing, effectively
intensifying competitive forces in the retail banking marketplace
Everest Group’s Ability | Performance | Experience (APEX) Matrix for Digital Effectiveness in U.S. Retail Banking1
1 Only publicly-available information (i.e., information from a consumers’ lens) has been used for the entire analysis
2 Star Performer analysis is done on a set of 14 banks that were also assessed last year on the APEX Matrix
Source: Everest Group (2016)
Leaders
Innovators
Optimizers
Aspirants
Digital functionality
Bu
sin
ess im
pact
High
Low
Low
High
Me
dia
n
Median
Star Performers2
Capital One
Wells Fargo
Bank of America
Citi
Regions Bank
TD Bank US Holding
USAA
M&T Bank
HSBC North
America
Holdings
PNC
Fifth Third Bank
Comerica
SunTrust
U.S. BankChase
Ally Bank
Huntington Bank
MUFG Union Bank
Key Bank
BB&T
Santander BankFirst Republic Bank
Discover
BMO Harris Bank
Moved from Optimizers
to the Leaders quadrant
Moved from Innovators to
the Optimizers quadrant
Moved from Innovators
to the Leaders quadrant
Strengthened Leaders
positioning
Citizens Bank
BBVA Compass
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-181010
This report also delves into differentiating attributes of best-
in-class banks as well as their relative standings across each
of the selected digital technology themes
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-181011
BFSI ITS research calendar
Published Current
Topic Release date
Q3 2016IT Outsourcing in Capital Markets – Annual Report 2016
Q3 2016IT Outsourcing in Global Capital Markets – Service Provider Landscape with PEAK Matrix™ Assessment 2016
IT Outsourcing in Banking – Service Provider Landscape with PEAK Matrix™ Assessment 2016 Q3 2016
Q3 2016Digital Effectiveness in Europe Retail Banking – APEX Matrix™ to Identify the Digital Banking Leaders 2016
Q4 2016Analytics in Banking– Service Provider Landscape with PEAK MatrixTM Assessment 2016
Q3 2016IT Outsourcing in Insurance – Annual Report 2016
Q4 2016Mobility in Insurance – Service Provider Landscape with PEAK MatrixTM Assessment 2016
Q4 2016Mobility in Banking– Service Provider Landscape with PEAK MatrixTM Assessment 2016
Q3 2016IT Outsourcing in Insurance – Service Provider Landscape with PEAK Matrix™ Assessment 2016
January 2016IT Applications Outsourcing in Insurance – Service Provider Profiles Compendium – 2015
June 2016IT Outsourcing in Banking – Annual Report 2016
June 2016Digital Effectiveness in U.S. Retail Banking – APEX Matrix™ to Identify the Digital Banking Leaders 2016
March 2016Blockchain in BFSI – Looking Beyond the Hype
Q4 2016Analytics in Insurance – Service Provider Landscape with PEAK MatrixTM Assessment 2016
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-181012
Application & Digital Services research calendar
Published Current
Topic Release date
The Agile Journey: Following Agile to Being Agile May 2015
Application Services – Annual Report 2015: “Agile to DevOps? Not so Fast” July 2015
North America Digital Adoption Survey – How Pervasive is your Digital strategy? August 2015
SaaS Implementation Services – Market Trends and PEAK Matrix™ Assessment & Profiles Compendium March 2016
Digital Services – PEAK Matrix™ Assessment and Profile Compendium 2015 November 2015
European Digital Adoption Survey – Is Your Digital Strategy Plateauing? December 2015
BFSI Digital Adoption Trends – The Investment Enigma for BFSI Enterprises: Where to Invest? March 2016
Healthcare & Life Sciences Digital Adoption Trends – Digital Adoption Driven by Consumerization of Healthcare April 2016
Application Services – Annual Report 2016: “No DevOps No Digital” May 2016
Independent Testing Services – Market update and PEAK Matrix™ Assessment & Profile Compendium 2016 June 2016
IoT Services – Market update and PEAK Matrix™ Assessment & Profile Compendium 2016 Q3 2016
Digital Services – Market update and PEAK Matrix™ Assessment & Profile Compendium 2016 Q3 2016
June 2016Digital Effectiveness in U.S. Retail Banking – APEX Matrix™ to Identify the Digital Banking Leaders 2016
Copyright © 2016, Everest Global, Inc.
EGR-2016-11-PD-181013
Additional research references
The following documents are recommended for additional insight into the topic covered in this report. The recommended documents either
provide additional details on the topic or complementary content that may be of interest.
1. IT Outsourcing in Banking – Annual Report 2016: Simplify the Bank (EGR-2016-11-R-1805); 2016. This report provides an overview of the
Application Outsourcing (AO) market for the banking industry through an in-depth analysis of large-sized AO contracts (i.e., contracts over
US$25 million in TCV and over three years in duration). The report analyzes key trends in the global banking industry with a specific focus on
simplification initiatives, demand drivers, adoption trends, and presents an outlook for 2016-2017
2. Blockchain in BFSI – Looking Beyond the Hype (EGR-2016-11-R-1725); 2016. This report attempts to cut through all the hype surrounding the
Blockchain technology and present a fact-based assessment of the state of the market, detailing investments made by participants such as financial
services companies, technology companies, and FinTech startups. The report helps to identify the opportunities, challenges, and key success factors
for BFSI enterprises looking to leverage the Blockchain technology and the implications for service providers
3. Demand Trends in Mid-Tier and Super-regional Banks in the United States (EGR-2015-11-R-1436); 2015. This report provides an overview of the
varying business priorities of banks in the United States, with a focus on mid-tier and super-regional banks. The report analyses the challenges
confronting the U.S. banking sector, business priorities for mid-tier and super-regional banks, unaddressed technology needs of banks in this segment,
and key account activities depicting the current service provider relationships and scope
For more information on this and other research published by Everest Group, please contact us:
Jimit Arora, Vice President:
Ankur Seth, Practice Director:
Aaditya Jain, Senior Analyst:
Archit Mishra, Senior Analyst:
Ronak Doshi, Senior Analyst:
Website: www.everestgrp.com | Phone: +1-214-451-3000 | Email: [email protected]
Blog
www.sherpasinblueshirts.com
@EverestGroup
Stay connected
Websites
www.everestgrp.com
research.everestgrp.com
Dallas (Headquarters)
+1-214-451-3000
New York
+1-646-805-4000
Toronto
+1-647-557-3475
London
+44-207-129-1318
Delhi
+91-124-284-1000
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve
sustained value. Our insight and guidance empowers clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com and research.everestgrp.com.
